MISC signs 10-year LNG ship lease agreements with ExxonMobil unit

MISC signs 10-year LNG ship lease agreements with ExxonMobil unit
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KUALA LUMPUR (Sept 30): Two MISC Bhd subsidiaries have inked 10-year ship lease agreements for two newly-built liquefied natural gas (LNG) carriers with ExxonMobil Corp’s wholly-owned unit SeaRiver Maritime LLC.

The agreements, or time charter parties, were inked by MISC units Polaris LNG Three Pte Ltd (Polaris 3) and Polaris LNG Four Pte Ltd (Polaris 4). Charters for the vessels will commence in 2026, MISC said in a filing.

“These LNG carriers will be equipped with eco efficient technologies such as X-DF 2.1 engines with Intelligent Control by Exhaust Recycling (iCER) System and Air Lubrication System, which will contribute to the reduction of greenhouse gas (GHG) emissions,” MISC said.

The petroleum and gas products shipping group has signed an agreement with a shipbuilder for the construction of the LNG in South Korea for delivery in the first quarter of 2023.

Meanwhile, Eaglestar Shipmanagement Gas (S) Pte Ltd will be appointed to provide project management services during the ship-building phase and take charge of the operationalisation and ship management of the vessels when they are delivered in 2026.

“MISC has been stepping up efforts by adopting innovative and responsible practices in our operations to support the maritime industry decarbonisation goals and these new LNG carriers reflect our commitment towards a greener and more sustainable shipping industry,” said MISC’s president/group CEO Datuk Yee Yang Chien.

MISC is one of the largest single owner-operators of LNG tankers in the world, with 30 carriers under its belt. The group’s Gas Assets & Solutions (GAS) fleet also runs six Very Large Ethane Carriers (VLEC) and two LNG Floating Storage Units (FSUs), with a combined deadweight tonnage (dwt) capacity (including LNG carriers) of over two million tonnes.

Shares of MISC fell 14 sen or 2.03% to RM6.76 at Friday (Sept 30)’s close, giving the group a market capitalisation of RM30.18 billion.

Adam Aziz